How KRA Thwarted Sh123M Rice Imports Tax Evasion

The Kenya Revenue Authority (KRA) has announced thwarting of a scheme to defraud the government of Sh123 million in taxes through the irregular clearance of imported rice containers in Mombasa.

In a statement released on Friday, the authority confirmed that the scheme involved the clearance of 161 containers of rice at one of the Container Freight Stations (CFS) between August 1 and August 23, 2025.

The tax evasion attempt was uncovered through routine audit checks, which flagged anomalies in the clearance process.

KRA described the discovery as timely, adding that the swift response enabled the Authority to recover the full amount of revenue that was at risk.

“Through routine audit checks, we uncovered and stopped the irregular clearance of 161 rice containers at a Mombasa Container Freight Station. This fraudulent scheme would have cost Kenyans Sh123 million in lost revenue, but we successfully recovered the full amount at risk,” the statement noted.

Following the discovery, KRA launched a comprehensive investigation into the matter and confirmed it is working closely with the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other law enforcement agencies.

“The Authority is collaborating closely with enforcement agencies to identify and hold accountable all individuals involved in the fraudulent scheme, including staff,” KRA said.

The tax agency reassured the public of its commitment to integrity and accountability, emphasising that anyone found culpable will face the full weight of the law.

The Commissioner of Customs and Border Control reaffirmed that KRA will remain vigilant in protecting the taxman’s revenue.

“The Authority assures the public that anyone found culpable, whether staff members or external parties, will face the full rigour of the law,” the statement concluded.

The Kenya Revenue Authority (KRA), established under the Kenya Revenue Authority Act, Chapter 469, effective July 1, 1995, is mandated to collect revenue on behalf of the Government of Kenya.

Its core functions include assessing, collecting, and accounting for revenue as provided by law, advising on revenue administration and collection matters, and carrying out other revenue-related duties as may be directed by the Minister.